Under NC General Statutes Chapter 87, what is the minimum insurance requirement for an unlimited general contractor?
Correct Answer
B) $500,000 general liability
NC General Statutes Chapter 87 requires unlimited general contractors to maintain $500,000 minimum general liability insurance.
Why This Is the Correct Answer
NC General Statutes Chapter 87 requires unlimited general contractors to maintain a minimum of $500,000 in general liability insurance. This higher threshold reflects the greater financial exposure of unlimited-license contractors who can take on projects of any value.
Why the Other Options Are Wrong
Option A: $100,000 general liability
$100,000 is insufficient for an unlimited license. This amount may be associated with lower license tiers or other trades but is not the NC Chapter 87 minimum for unlimited general contractors.
Option C: $50,000 general liability
$50,000 is far below the statutory minimum. This figure does not correspond to any recognized NC contractor insurance requirement.
Option D: $300,000 general liability
$300,000 is above $100,000 but below the required $500,000. It may appear plausible but does not meet the Chapter 87 requirement for unlimited licensees.
Memory Technique
Unlimited contractor = $500,000 minimum. Think: 'half a million for unlimited.' The bigger the license scope, the bigger the coverage floor.
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Previous Question
A contractor is bidding on a $750,000 commercial project in Charlotte. The estimated labor cost is $280,000. Using NC workers' compensation rates of $8.50 per $100 of payroll for this work classification, what is the workers' compensation insurance cost?
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According to NC General Statutes Chapter 87, what is the minimum dollar threshold for projects that require a licensed general contractor?